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May 02, 2006

Trade impacts

Has the global economy has hurt North Carolina? N.C. State University economist Mike Walden says the answer depends.

"It really depends on the industry that you are looking at ... Clearly the evidence shows that reduced tariff rates, the entry of China into the world trading market: those two events have hurt North Carolina’s traditional industries like textiles, tobacco and furniture. And you can see the effects in terms of less production and fewer employees in these industries," says Dr. Walden, an economist with the North Carolina Cooperative Extension Service.

"But the state’s newer industries -- areas like technology, vehicle parts, even banking –- the evidence shows that those industries have either not been hurt by globalization or they have actually been helped by the opening of world trade markets.

"So it’s really a difference between sort of the traditional or old North Carolina economy and the new North Carolina economy. And I think really what globalization is doing is hastening the transition from the old to the new."

Posted by deeshore at May 2, 2006 05:56 PM